Monetary Policy
Governors launch East African Payments System
East African Community presents new market infrastructure and plans to boost currency convertibility; Kenyan governor sets out monetary policy priorities for the region
Bank of Tanzania praised for ‘skilfully’ lowering inflation
The IMF praises Tanzania authorities for generating ‘rapid’ growth while clamping down on inflation and encouraging development of sovereign wealth fund
QE for infrastructure investment could be ECB's alternative to ‘pushing on a string'
As the ECB continues to struggle to boost lending in the eurozone periphery, a leading Greek academic is proposing it channels QE through the European Investment Bank
Lithuania may squeeze past eurozone’s asymmetric convergence criteria
The asymmetric nature of the EU’s convergence criteria means that Lithuania, with 0.6% average annual inflation, may only scrape into the eurozone next year
Monetary policy shock hits Norway house prices hard
Meanwhile, impact on household credit is muted, according to Norges Bank working paper; adds findings are consistent with small quarterly refinancing rate of mortgage stock
Kuroda: rising inflation expectations feeding into wages
Tightening labour market conditions and higher inflation expectations are both serving to increase wages, Kuroda tells Tokyo audience
Carney says UK's 3% growth is not ‘escape velocity'
Bank of England governor suggests rates likely to remain at current levels for another year or until recovery is underpinned by productivity pick-up and real wage growth
Central banks must grasp opportunity to shrink balance sheets safely
Central bank purchases of government bonds have turned traditional dogma on its head - but dangers lurk in the unwinding, warns Philip Turner
Tombini rejects ‘generalised vulnerability’ of EMs
Brazilian governor dismisses notion that exchange rate depreciation in wake of Fed taper is associated with an ‘inevitable, looming’ external payments crisis in emerging market economies
ECB’s Mersch defiant on OMTs
Yves Mersch tells an audience in Berlin the ECB would be willing to buy government bonds in the secondary market before the European Court of Justice’s ruling on OMTs
ECB paper finds press conferences have ‘gained in importance’
European researchers find the president’s press conferences have become a more important communication tool since the financial crisis
Paul Collier on central bank leadership, flawed policy and SWFs in Africa
More African central banks are moving towards inflation targeting, but Paul Collier tells Tom Bowker they should not mindlessly follow Western policy and may need to live with volatile inflation.
Paul Volcker on inflation, QE exit and monetary system flaws
Paul Volcker speaks with Robert Pringle about his experiences in defeating inflation, responses to the current financial crisis, QE exit and flawed discipline in the international monetary system.
ECB's Mario Draghi faces ongoing German ‘angst’
ECB president to face further German resistance on interest rates, banking union and OMTs – with Germany’s constitutional court ruling likely more problematic than some observers believe.
The case for hedging reserves portfolios with futures contracts
Central banks may still be able to hedge their bond and money market portfolios against rises in interest rates. Elisa Vilorio makes a case for using interest rate futures.
FOMC's Lockhart expects rate hike in second half of 2015
Atlanta Fed president believes QE will be 'completely phased out' by the end of 2014, but cautions it may take months to determine whether the US is on a 'sustained growth path'
RBA says low rates appropriate for 'some time yet'
The Reserve Bank of Australia sees evidence of the effects of 'substantial' monetary stimulus, but also says economy continues to face 'significant headwinds'
Monetary and macro-prudential co-ordination works well when pulling in same direction
Monetary and macro-prudential policy co-ordination brings benefits when they are both aiming at the output gap, but not when the regulator emphasises financial stability
FX lending in China tops $1 trillion, new BIS figures show
BIS's Robert McCauley estimates FX loans to China hit $1 trillion last year, though the recent renminbi depreciation may now cause lenders to think twice
FOMC should be more explicit about its reaction function, says Plosser
Federal Reserve Bank of Phladelphia president Charles Plosser says 'simple, robust rules' can provide useful guidance for FOMC policy
Bank of Zambia moves to quarterly MPC meetings
Central bank reduces number of planned MPC meetings each year in an effort to produce ‘more meaningful’ analysis with a ‘longer time perspective’
Tarullo addresses Dodd-Frank's impact on mid-sized banks
The Fed governor notes these lenders 'vary enormously in size' and bridge current $50bn bar for enhanced prudential supervision; suggests 'line might be better drawn' at $100bn
Yellen says Fed's balance sheet will shrink ‘considerably'
Federal Reserve chair Janet Yellen hints central bank may stop rolling over QE principal as early as next year; denies that Fed policies have exacerbated inequality by ‘goosing' stock market
New Zimbabwe governor demands transparency
John Mangudya backs planned reform at the Reserve Bank of Zimbabwe and calls for a more ‘transparent and responsible’ institution